RUSSIAN DIRECT INVESTMENT FUND (RDIF)
Swedish – Russian
Investment Forum
17th November 2011
Russia is a Powerful Global Economy…
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Fueled by Fundamental Growth Drivers…
,%
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…And Positioned Well For The Future
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Russian Direct Investment Fund (RDIF)
Fund mission
Fund objectives
Investment geography
•
To become catalyst for attracting direct investments, talent and
technologies into the Russian economy by carrying out profitable
investments
•
Attracting foreign direct investments into the Russian economy
•
Carrying out profitable investments
•
Predominantly Russian Federation
•
Foreign investments not to exceed 20% of the Fund
•
Investments in foreign companies must be approved by 75% of votes of the
Investment Committee / Supervisory Board…
•
…and only subject to (а) providing access to breakthrough technologies in
priority innovation and modernization sectors, or (b) having strategic
importance within the CIS
•
Focus is on private equity investments, in addition to (а) influential or
controlling stakes in public companies, and (b) equity-linked credit
instruments (e.g., convertible, mezzanine)
•
RDIF is structured as a private equity fund
•
Investment IRR target is at least 20%
Investment structure
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RDIF Key Investment Criteria
Mandatory
co-investment
Size of investment
•
RDIF can invest only with a co-investor or a group of co-investors in the
ratio of not less than 1:1 co-investor / RDIF
•
Co-investor must have at least $1 billion of assets under management, or
have market capitalization of at least $1 billion, or annual turnover of at
least $1 billion and EBITDA of at least $150 million*
•
Minimum deal size - $50 million equity investment in one project
•
Maximum deal size - $500 million equity investment in one project, unless
approved by 75% of the votes of the Investment Committee / Supervisory
Board
•
Ownership in the company of less than 49%; in typical transactions RDIF
ownership will not exceed 25%+1
•
The Fund will target significant influence and/or joint control with its coinvestors
•
Expected exit in 5-7 years
Ownership
Investment horizon
* According to the latest audited
financial statements
Co-investment is a enabling mechanism, which aims to (а) maximize the quality of RDIF investments and (b)
attract foreign direct investments into the Russian economy
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RDIF Structure and Management
Key development and
international trade
bank, chaired by Prime
Minister Vladimir Putin
International
Auditor
audit
International Advisory
Board
100%
ownership
sole investor
advice
RDIF
MANAGEMENT COMPANY
Three levels of governance:
I.
II.
STRATEGIC:
INVESTMENT:
III. OPERATIONAL:
CEMF Management
Agreement
Supervisory Board
• Investment strategy
• Rules and procedures
• Approval of large transactions
• Approval of transactions, for which special permit was
requested by Investment Committee
Russian Direct Investment Fund
(RDIF)
Stakes
in projects
ИНВЕСТОРЫ
ИНВЕСТОРЫ
(LimitedPORTFOLIO
Partners)
(Limited Partners)
COMPANIES
Investment Committee
• Approval of investment transactions
Chief Executive Officer and Executive Board
• Management team should possess significant investment
experience
• Day-to-day guidance of origination, assessment, structuring
and execution
• Hiring and management of investment team
• Preparation of recommendations for Supervisory Board and
Investment Committee
Stakes
in projects
Financial and Strategic
Investors
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RDIF World Class International Advisory Board
LOU JIWEI
Chairman and CEO
China Investment Corporation
(*Assets under management $410B)
LEON BLACK
Chairman and CEO
Apollo Global Management
($72B)
BADER MOHAMMAD AL-SA’AD
Managing Director
Kuwait Investment Authority
($296B)
DAVID BONDERMAN
Managing Partner
TPG
($48B)
CHONG-SUK CHOI
Chairman and CEO
Korea Investment Corporation
($37B)
STEPHEN SCHWARZMAN
Chairman and CEO
Blackstone Group
($129B)
KURT BJORKLUND
Co-managing Partner
Permira
($28B)
MARTIN HALUSA
CEO
Apax Partners
($40B)
JOSEPH SCHULL
Head of European operations
Warburg Pincus
($35B)
RICHARD DALEY
Distinguished senior fellow, the Harris School of
Public Policy, University of Chicago;
Mayor of Chicago from 1989 to 2011
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